Nfld. & Labrador

Price of gas in N.L. plummeting 14 cents due to rocky global market

The regulator's 'extraordinary' adjustment is a direct result of pandemic-induced tumult within global oil markets.

Buck-a-litre gas possible in some parts of province

The province's regulator adjusted prices in the face of "extraordinary" global market fluctuations. (Associated Press)

A "significant downward shift" in global oil price benchmarks since Thursday's weekly adjustment has prompted the Public Utilities Board to lower its maximum limits on petroleum products.

Gas has decreased by 14 cents a litre as a result, with diesel and furnace oil falling about 6 cents.

The regulator called the global shift "extraordinary" in a release and said it would continue to monitor market data and make adjustments whenever necessary.

"The average benchmark price for gasoline, as tracked on the New York Mercantile Exchange and converted to Canadian dollars, decreased over the period by 12.49 [cents per litre], resulting in a decrease of up to 14.4 [cents per litre], accounting for taxation and rounding," the statement said.

The modification will see some areas offering gas for a dollar a litre as of midnight Saturday. The cost of a litre on the Avalon averaged $1.20 last week.

The maximum prices are set weekly by the province's Public Utilities Board in keeping with the average benchmark price of the fuels. 

The following chart shows how prices have changed in Newfoundland and Labrador, as reported by users of the GasBuddy.com website.

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